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DIB increases foreign ownership to 40%

Dubai Islamic Bank, the largest Islamic bank in the UAE by assets, said on Thursday that it had “successfully executed the increase in its foreign ownership limit” (FOL) from the current level of 25 per cent to the new enhanced one of 40 per cent.

DIB’s move followed the regulatory approvals received from the Central Bank of the UAE and the Securities and Commodities Authority (SCA).

DIB is the latest financial institution in the UAE to join leading other banks, including First Abu Dhabi Bank and Emirates NBD, in raising the FOL from 2019.

The enhancement of FOL was executed through the Dubai Financial Market (DFM), the bank said.

“The increase in FOL is driven primarily by strong investor demand from large foreign institutional investors and the rising confidence they have in the bank’s growth ambitions. DIB is geared towards benefitting from the re-opening of the Dubai economy post the global pandemic, as global investors seek to shift their investments towards stronger and more stable financial markets,” DIB, a public joint stock company listed on the Dubai Financial Market, said in a statement.

“The UAE has been among the fastest economies to recover from the global pandemic as a result of effective fiscal policies supported by world-leading vaccination campaigns and safety measures adopted,” said Dr. Adnan Chilwan, group CEO of DIB.

“Global investor community has shown strong confidence in the UAE financial and capital markets as well as DIB, which has already seen a significant uptick in share price performance, since the start of this year. The increase in FOL to 40 per cent will serve as another catalyst at a critical juncture with DIB’s alignment to the fast recovering economic environment,” he said.

Chilwan said DIB’s H1 2021 results have demonstrated the bank’s resilience in these times, with a healthy trend across all key metrics around profitability, growth, capitalisation and liquidity. “Supported by our strategy of fostering a customer-centric culture, we are developing into a stronger responsible institution that generates value for all our stakeholders.”

“As the UAE commemorates a remarkable year, with major economic events such as the Expo 2020 and its golden jubilee, DIB remains steadfast in its commitments to supporting these economic ambitions whilst continuing to position itself as a leading financial hub in the region and the world,” he said.

issacjohn@khaleejtimes.com